AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 2071
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.... documents, without making any kind of verification of the entries made therein, without making proper enquiries and collecting any material/corroborative evidence with respect to such expenditure. 3. On the facts and circumstances of the case and in law, the Ld. Assessing Officer erred in making disallowance u/s 69C of the Income Tax Act on account of unaccounted expenditure, when the statement given by the appellant during the course of search proceedings was retracted within reasonable time. Thus, the onus was heavily shifted on the Assessing Officer to prove with necessary supporting evidences that, the transactions recorded in the impounded material belongs to the assesse only and chargeable to tax as his undisclosed income. The Assessing Officer made disallowance without discharge the onus lies on him. Therefore, the addition made by the Assessing Officer is legally not sustainable. 4. On the facts and circumstances of the case and in law, the Ld. CIT(Appeals) erred in not following the ratio laid down by the judgement of Hon'ble Allahabad High Court in the case of CIT, Kanpur vs. Shadiram Ganga Prasad, 2010 UPTC 840 that presumption under Section 132(4A....
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.... objected to the said additional ground raised by the assessee for the first time, that too without moving a written application. 4. We have heard the counsels for both the parties at length on the admissibility and maintainability of the additional grounds raised by the assessee. In fact, Ld. AR has drawn our attention to the facts of the case, wherein it has categorically been mentioned that "During the course of a survey proceedings u/s.133A of the Income Tax Act in the case of M/s. Raj Impex at Room No.101, 101A, Devidarshan Complex, Tembhi Naka,BhavaniChowk, Thane, Maharashtra-4000601, certain note books, diaries, lose papers were found and impounded and placed and inventory of books and documents found and impounded from the survey premises." 5. Therefore, according to the assessee, since it is a case of survey u/s.133A of the Act and the material was also impounded from the survey premises therefore, assessment could not have been framed u/s.153A of the Income Tax Act. 6. In our view, the assessee has raised a purely legal ground without reference to any disputed question of facts and the ground raised by the assessee goes to the roots of the case and for deciding t....
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....f the rules coupled with basic purpose underlying the appellate powers of the Tribunal, which is to deal with the question of legal interpretation and to ascertain the correct tax liability of the assessee, leaves no manner of doubt that the Tribunal while exercising its appellate jurisdiction, has discretion to allow to be raised before it New or Additional questions of law arising out of the record before it. 12. On this proposition of law, reliance is being placed on the decision in the case of UMT Spinning Company Ltd. Vs. CIT (2016) 74 taxmann.com 33(P&H). 13. Therefore, taking into consideration our above discussion and also keeping in view the principles laid down by Hon'ble Supreme Court in the case of NTPC vs CIT 229 ITR 383 and Jute Corporation of India Ltd. Vs. CIT 187 ITR 688(SC) we allow the assessee to orally raise additional ground regarding the legality of the orders passed by the AO. 14. Since the additional ground raised by the assessee relates to challenging the legality and maintainability of the assessment order. In this regard, we have heard both the parties and perused the material available on record, Judgments cited before us and also perused the o....
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....e assessment year relevant to the previous year in which such search is conducted or requisition is made and assess or reassess the same. Since the assessment under section 153A of the Act is linked with search and requisition under sections 132 and 1324 of the Act, it is evident that the object of the section is to bring to tax the undisclosed income which is found during the course of or pursuant to the search or requisition. However, instead of the earlier regime of block assessment whereby, it was only the undisclosed income of the block period that was assessed, section 153A of the Act seeks to assess the total income for the assessment year, which is clear from the first proviso thereto which provides that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years. The second proviso makes the intention of the Legislature clear as the same provides that assessment or reassessment, if any, relating to the six assessment years referred to in the sub-section pending on the date of initiation of search under section 132 or' requisition under section 132A, as the case may be, shall abate. Sub-sect....
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....i Steel (India)v. Asst. CIT (supra), the earlier assessment would have to be reiterated, in case where pending assessments have abated, the Assessing Officer can pass assessment orders for each of the six years determining the total income of the assessee which would include income declared in the returns, if any, furnished by the assessee as well as undisclosed income, if any, unearthed during the search or requisition. In case where a pending reassessment under section 147 of the Act has abated, needless to state that the scope and ambit of the assessment would include any order which the Assessing Officer could have passed under section 147 of the Act as well as under section 153A of the Act. 19. We find that the additions made in the assessment order passed in the present case are not based on any incriminating material or documents found during search. In fact, the assessment order does not refer to any seized material or any incriminating material found during the course of search. This position of law (that addition u/s 153A/153C can be made only on the basis of incriminating material etc. found during search), has been elaborated by the Hon'ble jurisdictional High Co....